Find out if switching your home loan to a lower-rate bank actually saves you money after fees
Current Loan Details
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New Bank Offer
Switching Costs
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Net Savings from Balance Transfer
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EMI saved / mo
Interest Savings
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Switching Cost
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Break-even
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Enter your current loan details and the new bank's offer to see if switching is worth it.
Old Bank vs New Bank
Old Bank
EMI₹0
Total Interest₹0
New Bank
EMI₹0
Total Interest₹0
🔢 How This Is Calculated
EMI = P x r x (1+r)^n / [(1+r)^n - 1]
Total Old Interest Remaining = (Old EMI x Remaining months) - Outstanding Principal
Total New Interest = (New EMI x New tenure months) - Outstanding Principal
Total Savings = Total Old Interest - Total New Interest - Switching Costs
Break-even = Switching Costs / Monthly EMI Savings (in months)
Cumulative Interest Paid — Old Bank vs New Bank
Old bank
New bank
Sensitivity: Savings at Different New Bank Rates
New Rate
New EMI
Net Savings
ⓘ Figures shown are estimates. Actual bank offers, processing timelines, eligibility criteria, and final approved terms vary by lender and borrower profile. Please confirm exact charges with both banks before initiating a balance transfer.
★ Premium Balance Transfer Report — ₹99
Net Savings
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Break-even
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Old Bank Interest
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New Bank Interest
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Full old vs new bank comparison with switching cost break-up
Cumulative interest chart and break-even analysis
Sensitivity table across different new bank rates
Clear worth-it / not-worth-it decision summary
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Frequently Asked Questions
When should I do a home loan balance transfer? +
A balance transfer usually makes sense when the new bank's rate is at least 0.5%–0.75% lower than your current rate, you have a large outstanding principal, and a meaningfully long remaining tenure (5+ years) left to recover the switching costs. It works best early in the loan when the outstanding balance and interest component are still high. If your loan has only a few years left, the interest savings may not cover the processing fee and legal charges, so always check the break-even month before switching.
What are the costs of home loan balance transfer? +
Typical costs include a processing fee at the new bank (usually 0.5%–1% of the outstanding loan amount), legal and property valuation charges (roughly ₹5,000–₹15,000), and possibly a pre-payment penalty from your existing lender if you are on a fixed rate (RBI rules exempt floating-rate loans from this charge). There may also be minor costs such as stamp duty on the new loan agreement, MOD charges, and administrative fees. Always ask both banks for a complete cost break-up before deciding.
How much can I save by reducing my home loan interest rate? +
Even a small rate cut can produce large savings on a big, long-tenure loan because interest is calculated on the outstanding balance every month. For example, moving a ₹40 lakh loan with 15 years remaining from 9.5% to 8.5% can lower the EMI by roughly ₹2,000–₹2,500 per month and save several lakh rupees in total interest over the remaining tenure, comfortably covering typical switching costs within a year or two. Use the calculator above to see your exact numbers based on your outstanding amount and tenure.
Can I do balance transfer without pre-payment penalty? +
Yes, in most cases. RBI regulations prohibit banks and housing finance companies from charging a pre-payment or foreclosure penalty on floating-rate home loans taken by individual borrowers, which covers the vast majority of home loans in India. A penalty may still apply if your loan is on a fixed interest rate, or if it was taken for business or non-individual purposes. Check your loan agreement's foreclosure clause or ask your lender directly to confirm before initiating a transfer.